RP Sanjiv Goenka Group's retail flagship, Spencer's Retail, in an all-cash deal acquired Godrej Group's Nature's Basket for Rs 300 crore.
On Friday, in a stock exchange filing, Spencer's Retail said this deal will enable it to access the western India market, where it has no presence, strengthening its omnichannel capabilities and improve its national presence. It also reported its first full-year net profit of Rs 7.94 crore, from a revenue of Rs 2,187.19 crore in the financial year 2018-19.
Spencer's operates in 156 stores in 10 states. It exited Mumbai in 2013 to move out of loss-making stores at the time.
Nature's Basket, wholly owned premium food retailing venture by the Godrej Group, operates as 36 neighbourhood convenience stores in Mumbai, Pune and Bengaluru. It reported a sales of Rs 338.28 crore for 2018-19.
In a press release, Tanya Dubash, Godrej Group executive director said that in order to further unlock the "immense potential" of the Nature's Basket brand and reach greater heights, the group decided to "pass on the torch to owners who have prioritised retail in their portfolio strategy and have the relevant ecosystems to take the business to the next level."
Shares of Spencer's Retail spiked by 4.08 percent just before before market closing on Friday to end at Rs 135.35 a piece.